Saudi Arabia Self-Employed — Zakat / CIT, VAT, WHT & ZATCA Portal Filing

Confirm the taxpayer holds an active Commercial Registration (CR) and is ZATCA-registered. Determine entity type (sole establishment, single-shareholder LLC, multi-member LLC, or branch of foreign company), capture full ownership nationality breakdown (Saudi / GCC / foreign), confirm MISA investment license exists for any foreign-owned entity, and classify the regime: Zakat-only (100% Saudi/GCC), CIT-only at 20% (100% foreign), or a proportional split. Refuse and redirect to sa-formation if no CR or MISA license is present for a foreign owner.

Collect and parse all source documents needed to compute the Zakat base and/or CIT taxable income, verify VAT turnover thresholds, and confirm subsidiary obligations. Key documents include the 2025 financial statements (income statement, balance sheet), prior-year Zakat/CIT return as filed, ZATCA registration certificate, VAT certificate, GOSI subscriber list, and bank statements. Establish whether turnover meets or exceeds the SAR 375,000 mandatory VAT threshold and whether audited financial statements are required (entities above SAR 40 million must attach SOCPA-signed audited accounts).

Compute the applicable tax charge based on the regime determined in Phase 1. For Saudi/GCC-owned entities: calculate the Zakat base using the higher-of rule (net adjusted profit vs. working capital base per the Implementing Regulations under Ministerial Resolution 2216, 1440H) and apply the 2.5% Hijri rate (or 2.577% Gregorian-equivalent). For foreign-owned entities: compute adjusted taxable income under the Income Tax Law (Royal Decree M/1, 1425H), apply the Article 12 interest deduction cap (50% of EBITDA), apply the Article 21 loss carry-forward offset (capped at 25% of current-year taxable income), and apply the 20% standard CIT rate. For mixed-ownership entities: run both computations proportionally and reconcile to a single combined ZATCA liability.

Reconcile the 2025 VAT position if the entity is VAT-registered. Saudi VAT runs at 15% standard rate (Royal Order A/638, 2020) with quarterly returns for entities with turnover up to SAR 40 million (due by the 28th of the month following the quarter) and monthly returns above that threshold. Verify all 2025 VAT periods have been filed and paid via SADAD. Confirm Fatoorah Phase 1 (Generation, mandatory since 4 December 2021) compliance — structured e-invoices with QR codes — and check whether the entity has received a ZATCA Phase 2 (Integration) wave notification requiring API-level clearance.

Check whether the entity made any payments to non-resident suppliers, lenders, licensors, or service providers in 2025, triggering monthly WHT obligations (ITL Articles 68–69: dividends 5%, interest/loan charges 5%, royalties 15%, management fees 20%). Verify all 12 monthly WHT returns were filed within 10 days of each month-end and settled via SADAD. If the entity has employees, confirm GOSI subscription (Saudi employees: ~21% employer + ~9.75% employee; non-Saudi: 2% employer for occupational hazards), Mudad Wage Protection System (WPS) payroll file submissions, and Nitaqat Saudization band status.

Assemble the complete reviewer-ready working paper package: master Excel workbook with ZATCA-aligned schedules, Zakat declaration or CIT Form 800 computation, VAT reconciliation, WHT compliance log, and GOSI/Saudization confirmation. Submit the annual Zakat/Tax return electronically via the ZATCA portal (zatca.gov.sa), upload SOCPA-signed audited financial statements if required, generate the SADAD billing reference, and settle payment via Saudi bank channels before the 120-day deadline (30 April 2026 for 31 December 2025 fiscal year-end). Retain all records for 10 years per ZATCA guidance.